Finding 519386 (2022-003)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2025-01-16

AI Summary

  • Core Issue: The Organization failed to file the data collection form on time due to delays in finalizing financial statements.
  • Impacted Requirements: This resulted in noncompliance with federal audit standards.
  • Recommended Follow-Up: Implement a monthly reporting checklist to ensure timely audits and filings.

Finding Text

Program: All federal programs.  Criteria or specific requirement: Management is responsible for the timely filing of the data collection form with the federal audit clearinghouse.  Condition: The Organization did not have a fully reconciled final trial balance supported by reconciled schedules until November 2023, which caused significant delays in the audit process. This, in turn, led to the untimely filing of the data collection form.  Effect: Noncompliance with single audit standards.  Cause: The timely close process of monthly financial statements was delayed due to change in personnel and lack of reliable system data.  Recommendation: We recommend that management of the Organization closely follow a monthly reporting checklist which lists all reports due and reconciliations required in support thereof. This should assist in ensuring timely completion of the audit and filing of the data collection form with the federal audit clearinghouse.  Views of responsible officials and planned corrective actions: Management is in agreement with the finding. See Corrective Action Plan.

Corrective Action Plan

Contact Person Responsible for Corrective Action: Bob Rosvold, CFO. Corrective Action Taken or Planned: A more timely monthly financial statement close process has been implemented with the creation of checklists and the upgrading of the financial system, including general ledger. Anticipated Completion Date: These improvements were initiated in fiscal year 2023 and are under further development in fiscal years 2024 and 2025.

Categories

Reporting

Other Findings in this Audit

  • 1095828 2022-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services - Partners in Wellness $1.47M
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $1.14M
21.019 Coronavirus Relief Fund $20,253